There are 38 nearly identical ABC stores within a one-mile radius in Waikiki. The combined size of these 38 stores allows ABC to offer large quantities at favorable prices. a. ABC gained market power through   economies of scale government protection control of an important input . b. ABC’s market power   does does not guarantee that the firm makes an economic profit.

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Identify an industry that enjoys perfect (or nearly perfect) competition. How do the competitors interact with each other and suppliers and customers?

What would happen to the following if there is anincrease in marginal cost? (a) The price that the monopolist can charge. (b) The quantity that the monopolist will produce. (c) The quantity that the perfectly competitive industry will produce. (d) The maximum profit of the perfectly competitive industry. .

Compare and contrast the decision-making processes of a competitive firm versus a monopoly firm. a. The difference between C and M markets in terms of the (homogeneity or uniqueness of product, barriers to enter and number of firms). b. You must point to the difference in the demand curve for a C firm and that for a M firm. c You must refer to the long run profit (or not) of the C as well as M firm. d. You must point to whether C and M firms are efficient or NOT. Graphs are welcome, not manadatory.

There are 38 nearly identical ABC stores within a one-mile radius in Waikiki. The combined size of these 38 stores allows ABC to offer large quantities at favorable prices. a. ABC gained market power through   a.economies of scale b.government protection c.control of an important input . b. ABC’s market power   a.does b.does not guarantee that the firm makes an economic profit.

The figure below shows the demand and costs facing Mike's Bikes, a producer of mountain bikes. What quantity does the firm produce and what is its price? Calculate the firm's economic profit or economic loss. Price and cost (dollars per bike) 400 350 300 250 200 150 100 50 MC ATC MR 100 200 Quantity (mountain bikes per week) Quantity produced is 100 mountain bikes per week, price of a mountain bike is $200 per bike, and economic loss is $10,000. Quantity produced is 100 mountain bikes per week, price of a mountain bike is $250 per bike, and economic loss is $5,000. Quantity produced is 100 mountain bikes per week, price of a mountain bike is $200 per bike, and economic profit is $5,000. Quantity produced is 100 mountain bikes per week, price of a mountain bike is $250 per bike, and economic profit is $5,000.

Hotel Nemo is the only under-sea hotel in the nation. The table sets out the demand schedule for hotel rooms and the cost schedule for running the hotel. Calculate Hotel Nemo's profit-maximizing price, output and economic profit if it charges a single price for all rooms. Hotel Nemo's profit-maximizing output is Hotel Nemo's profit-maximizing price is >>> Answer to 2 decimal places. rooms a night. a room. When Hotel Nemo produces the profit-maximizing output and charges the profit-maximizing price, economic profit is s >>> If the firm incurs an economic loss, indicate the loss with a minus sign. If the firm eams an economic profit, do not include a plus sign. Price (dollars per room) 272722NO 30 24 21 18 » 15 12 9 6 Quantity (rooms per night) 0 100 200 300 400 500 600 700 800 Total cost (dollars per night) 1,000 1,900 2,800 3,700 4,600 5,500 6,400 7,300 8,200

What type of industry has the characteristics where there are many producers, they are able to differentiate their product, the barriers to entry are low, and a firm in the industry has the ability to manipulate price to a certain extent. What type of industry is this? Will this type of industry be able to enjoy profits in the long run? Why? Also is this firm producing at productivity and allocative efficiency? Why?

market conditions in this industry. What is the maximum amount of profit the firm can earn? Firm Industry SMC ATC U X 0 20 40 60 80 100 Output of the firm Multiple Choice $50 $40 $80 D 5,000 Industry output 10,000